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Help please & thank you! Required information [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's
Help please & thank you!
Required information [The following information applies to the questions displayed below] Westerville Company reported the following results from last year's operations: At the beginning of this year, the company has a $325,000 investment opportunity with the following cost and revenue characteristics: The company's minimum required rate of return is 15%. 15-0. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%. If Westerville's Chief Executive Dificer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the nvestment opportunity? Yes No At the beginning of this year, the company has a $325,000 investment opportunity with the following cost and revenue characteristics: The company's minimum required rate of return is 15%. 15-a. Assume that the contribution margin ratio of the investment opportunity was 65% instead of 70%. If Westerville's Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? Yes No 15-b. Would the owners of the company want her to pursue the investment opportunity? Yes Step by Step Solution
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